Moscow will embargo countries that support the Group of Seven (G7) nations’ proposed price limit on its oil, Russian Foreign Ministry spokeswoman Maria Zakharova warned on Thursday. The statement was echoed by Kremlin Spokesman Dmitry Peskov.
According to Reuters, Russia does not plan to supply oil and gas to countries supporting a price cap on Russian oil, the Kremlin said on Thursday, but will make a final decision once it analyses all the figures.
“We have repeatedly said that the introduction of the so-called price ceiling for Russian oil is an anti-market measure, it disrupts supply chains, and can significantly complicate the situation on global energy markets,” Zakharova told a briefing on Thursday, adding, “The Russian Federation does not plan to supply oil to countries that will join the cartel of buyers.”
The G7 is looking at a cap on Russian seaborne oil at $65-$70 a barrel, though European Union governments have not yet agreed on a price, and talks are set to continue.
It allows Russia to make a small profit.
THE DEADLINE IS DECEMBER 5TH
The EU hasn’t set a price yet despite the deadline of December 5th. The EU also doesn’t know where it will get the extra 1.5 million barrels of oil it needs each day.
“As of now, we stand by President (Vladimir) Putin’s position that we will not supply oil and gas to the countries which would set (the cap) and join the cap,” Kremlin spokesman Dmitry Peskov told his daily call with reporters.
THE EMBARGO COULD BE UP IN THE AIR
“But we need to analyze everything before we formulate our position.“
If approved, the price cap would bar Western corporations from providing insurance, re-insurance, brokering, and financial assistance to vessels loaded with Russian crude unless sold below the agreed price.
Zakharova noted that many oil-producing countries also oppose such a measure, pointing out: “They simply understand that today, by targeting Russia for purely economic reasons, … they [Western countries] can apply [such a measure] to any other country.”
She stressed that “price dictates undermine the world trade system and create a dangerous precedent not only in the energy market but also for international trade in general.”
The world is in trouble over the embargo and the lack of enough oil and gas to the EU.